Market
18
Nov
2024
3
min read

The growing impact of cobalt: essential metal for modern technologies 

Cobalt powers clean energy innovations but raises concerns over ethics, human rights, and Cobalt has become an indispensable resource in modern technology, playing a critical role in energy storage and the global transition toward renewable energy. Found primarily as a byproduct of copper and nickel mining, cobalt’s unique chemical properties enhance the energy density and heat resistance of lithium-ion batteries. These batteries power everything from electric vehicles (EVs) to laptops and smartphones, driving cobalt demand to unprecedented levels. 

Surging demand in a greener future 

As the world moves away from fossil fuels, demand for cobalt has more than tripled since 2010. According to industry projections, cobalt demand could quadruple by 2030, largely fueled by the rapid adoption of electric vehicles. Currently, over 71% of mined cobalt is used in battery production, with nearly half dedicated to EV batteries and 26% used in portable electronics, according to Statista.

China has emerged as a dominant player in refining cobalt, but the Democratic Republic of Congo (DRC) remains the world's leading producer, accounting for roughly 75% of global cobalt mine production.

The hidden costs of cobalt mining 

While cobalt is critical to clean energy, its extraction comes with significant ethical and environmental challenges. Amnesty International reports that industrial mining in the DRC has led to forced evictions, sexual violence, and environmental devastation. These human rights abuses highlight the urgent need for more ethical sourcing practices and sustainable alternatives.

Exploring alternatives to cobalt 

If cobalt isn't used, there's no need for mining—simple but impactful. Research into cobalt-free battery technologies continues, offering hope for reducing reliance on this controversial metal and addressing its ethical challenges. However, until scalable solutions are developed, cobalt remains a cornerstone of the global economy.

Meanwhile, some manufacturers, such as Fairphone, are taking proactive steps to source cobalt as sustainably as possible, prioritizing both environmental and human welfare in their supply chains.

Via: Statista

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